What Is Nudge theory In Behavioral Economics?

Nudge theory is a concept in behavioral science that proposes that small, non-coercive changes to the environment can influence people’s behavior in predictable ways. This theory suggests that people can be “nudged” towards certain behaviors, such as saving for retirement or recycling, by providing them with information or by making certain choices more convenient or appealing. The goal of nudge theory is to help people make better decisions without restricting their freedom of choice. It is based on the idea that people are not always rational and that they are influenced by a variety of factors, such as emotions, social norms, and cognitive biases. Nudge theory has been applied in a range of fields, including public policy, marketing, and organizational behavior.However, in the real world nudges have not been shown to be effective. They either have no impact or an exceedingly small impact

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